Law: Sales Tax Act, 1990

Section: 2,2(37),21(2)

[Sales Tax Act (VII of 1990)]......Sections 2(37), 21(2)-.- Rule 37 (as amended vide sales tax general order No.35/2012 dated 30-6-2012)-.- Appeal-.- Grant of Stay-.- registered person, a private limited company, involved in adjustment of input tax on the strength of invoices issued by the persons whose sales tax registrations have been blacklisted, thus it was held that the registered person was involved in overstating the entitlement to tax credit by way of illegal adjustment of input tax on account of invoices issued by the blacklisted suppliers which fall within the meaning of tax fraud as defined under section 2(37) of the Sales Tax Act. 1990, as a result the registration of registered person was suspended to avoid further loss of revenue, tax-payer filed the instant appeal-.- Contention of the registered person, as per Rule 37, Commissioner was obliged to issue Show-cause Notice through registered post or courier service within 7 days of the issuance of suspension order of the registered person but the letter was issued on 26/11/2012, however, to cover the lacuna the Show-cause Notice was antedated 23/11/2012, Show-cause Notice and suspension order be declared void ab-initio-.- Respondned could satisfy the Tribunal-.- Tribunal was pleased to accept the appeal and declare order of suspension as well as Show-cause Notice to be void ab-initio, however the Department shall be at liberty, if need be to complete the legal exercise-.- Miscellaneous Application for grant of stay was accordingly dismissed-.- ORDER This order shall dispose of the titled appeal and miscellaneous application for grant of stay filed by the registered person against order C. No J-1715 dated 16-11-2012 passed by the Commissioner Inland Revenue Zone-Ill. Lahore. 2. Brief facts of the case as stated by the CIR in his order u/s 21(2) are that the appellant, a private limited company, was involved in adjustment of input tax on the strength of invoices issued by the persons whose sales tax registrations have been blacklisted. Thus it was held that the registered person was involved in overstating the entitlement to tax credit by way of illegal adjustment of input tax on account of invoices…

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